ANNEXURE - ACCOUNTING POLICIES AND GENERAL NOTES TO THE ACCOUNTS

A) ACCOUNTING POLICIES

1. BASIS OF brPARATION OF FINANCIAL STATEMENTS

The financial statements have been brpared on the historical cost convention basis. The generally accepted accounting principles and the Accounting Standards referred under section 133 of the Companies Act, 2013 have been adopted by the Company and disclosures made in accordance with the requirements of Schedule III to the Companies Act, 2013 and the Indian Accounting Standards.

2. FIXED ASSETS

In the brvious year, Gross block of fixed assets was stated at their original cost.

3. DEbrCIATION

There are no fixed assets in the current year, In the brvious year debrciation was provided as under:-

3.1 Debrciation is provided on Fixed Assets with reference to their historical cost.

3.2 Debrciation is provided on Straight-line method at rates based upon life determined by the management which are lower than the life determined based on the rates specified in Schedule XIV to the Companies Act, 1956. The debrciation rates based on useful life as estimated by the management are 19% for Vehicles, 19% for Mobiles (office equipment) and 31.33% for Computers (office equipment).

3.3 Debrciation is calculated on a pro rata basis except that, assets costing upto Rs. 5,000 each are fully debrciated in the year of purchase.

4. INVESTMENTS

4.1 Long term quoted investments are valued at cost unless there is a permanent fall in their value as at the date of Balance Sheet.

4.2 Unquoted investment in subsidiaries being of long term nature are valued at cost and no loss is recognized in the fall in their net worth, if any, unless there is permanent fall in their value.

5. CONTINGENT LIABILITY

Liabilities, though contingent, are provided for if there are reasonable prospects of such liabilities maturing. Other contingent liabilities, barring frivolous claims not acknowledged as debt, are disclosed by way of note.

6. REVENUE RECOGNITION

6.1 Revenue from operations and other income are recognized in accordance with the Accounting Standard (AS-9). Accordingly, wherever there are uncertainties in the ascertainment or realization of income such as interest from customers (including the financial condition of the person from whom the same is to be realized), the same is not accounted for.

6.2 Interim dividend income from investments is recognized in the Profit and Loss Account on receipt basis.

7. TAXATION

7.1 Tax provision is made, in accordance with the Income Tax Act, 1961 including the provisions regarding Minimum Alternate Tax and the contentions of the Company and also the fact that certain expenditure becoming allowable on payment being made before filing of the return of income.

7.2 Deferred tax assets and liabilities are accounted for on the basis of Accounting Standard AS-22. Deferred tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

8. EARNING PER SHARE

The earnings considered in ascertaining the Company's Earnings Per Share ('EPS') comprise the net profit after tax after reckoning of dividend to equity and brference shareholders. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year.

The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares.

B) GENERAL NOTES

1. Tax on distributed profits: The interim dividend to equity shareholders (Rs.967.89 lakhs) as well as proposed dividend to brference shareholders (Rs.103.35 lakhs) is paid out of dividend received from the subsidiary (Rs.3,000.00 lakhs). No tax is payable under section 115-O of the Income Tax Act, 1961 and hence no provision has been made for dividend distribution tax.

2. The company is a Core Investment Company (CIC) within the meaning of Core Investment Companies (Reserve Bank) Directions, 2011 and does not require registration with Reserve Bank of India under said directions.

3. The company has only one segment i.e. Core Investments.

4. Previous year figures have been regrouped/ rearranged to accord with current year classification.

As per our report of even date attached

For THAKUR, VAIDYANATH AIYAR & CO.

Chartered Accountants

Regn. No. 000038N

V. Rajaraman

Partner

M.No. 2705

Rajat Lakhanpal WHOLE TIME DIRECTOR, CHIEF FINANCIAL OFFICER & COMPANY SECRETARY (DIN:00005664)

Kartik Bharat Ram CHAIRMAN (DIN:00008557)

Dhirendra Datta DIRECTOR (DIN: 02376649)

Amitav Virmani DIRECTOR (DIN: 02169955)

Place: New Delhi

Date: 30th May 2015